Sweeping tariffs imposed by US President Donald Trump — and the resulting uncertainty — could end up boosting demand for renewable energy, according to an energy think tank.
Trump’s tariffs have sent markets from energy and equities plummeting and stoked concerns about a global recession.
The fallout from those tariffs, including potential trade wars, could impact electricity demand this year and also prompt countries across the world to think about energy security, according to UK-based energy think tank Ember.
Also on AF: Asian Markets Simmer as China Rejects US Tariffs ‘Blackmail’
Though it is too early to tell how that would play out, it could still boost demand for renewable power, it said.
“Countries are thinking about their security and energy security more than ever before and I think that means homegrown renewable power like wind and solar becomes more and more attractive,” Ember electricity and data analyst Euan Graham told Reuters.
Renewable power generation provided a record 32% of global electricity last year, according to a report released by Ember on Tuesday. Overall electricity demand, meanwhile, grew 4% driven by heatwaves and data centres.
The growth of renewable energy – including wind, hydro and solar – in the global electricity mix in 2024 beat the previous year’s 30% record, Ember’s Global Electricity Review showed.
“Despite geopolitical and economic headwinds, the renewables industry delivered an additional 858 TWh of generation to the system last year — more than the combined annual electricity consumption of the UK and France,” Bruce Douglas, CEO of the Global Renewables Alliance said in a statement accompanying the report.
Heatwaves fuelling power demand
The rise in electricity consumption for artificial intelligence, data centres, electric vehicles and heat pumps contributed 0.7% of the global demand growth last year, the report showed.
Heatwaves in 2024 also increased electricity demand for cooling, adding a further 0.7% or 208 terawatt hours (TWh) to the global total, it said.
Heatwaves, meanwhile, will likely continue impacting global electricity demand this year as the world continues to be hit by unprecedented temperatures.
Last month was the planet’s second-warmest March on record – exceeded only by March in 2024, the EU’s Copernicus Climate Change Service (C3S) said in a monthly bulletin.
The global average temperature in March was 1.6 degrees Celsius higher than in pre-industrial times.
The main driver of climate change is greenhouse gas emissions from burning fossil fuels, according to the scientific consensus among climate scientists.
Scientists say the development of renewable energy will be crucial for the world to be able to reduce emissions, and efforts to effectively combat climate change over the next two decades.
- Reuters, with additional editing and inputs from Vishakha Saxena
Also read:
Spending on Global Energy Transition Well Under What’s Needed
Not a Single Asian Country Met Air Quality Standards in 2024
Carbon Capture Costlier Than Full Switch to Renewables: Study
Hottest-Ever January Extends Streak Breaching 1.5C Threshold
Oil Giants Ditch Renewables, Double Down on Fossil Fuels
Asian Steelmakers Failing on Shift to Renewables, Survey Finds
2024 Was China’s Warmest Year Since 1961, Shanghai Roasted
Arctic Tundra Now Emits More Carbon Than it Stores
